What impact would an invention allowing instantaneous, free production of goods have on the overall economy?

An invention that allows instantaneous, free production of goods would likely lead to deflation. This is because, with the ability to produce goods at no cost and instantaneously, the supply of these goods would greatly increase. When the supply of goods rises significantly while demand remains constant, the prices of those goods would tend to decrease.

In economic terms, deflation refers to a general decline in prices, and this phenomenon can lead to increased purchasing power for consumers as their money can buy more than before. Additionally, if goods are produced freely and in abundance, the competitive pressures on pricing would drive down costs, leading to a widespread reduction in prices across the economy.

Since the fundamental relationship between supply, demand, and price dynamics indicates that more supply usually leads to lower prices, it creates a favorable restructuring of the economy where consumers benefit from lower costs. While other economic conditions such as hyperinflation, stagnation, or recession could arise from differing economic scenarios, the conditions presented here strongly support the deflation scenario as the direct effect of instantaneous free production.